The Hathaway Effect: Does The Anne Hathaway Effect Really True?


Introduction

Today Machine Learning plays a crucial role in predicting stock prices and the growth of popular organizations and investment banks. While working on many such problems we consider many relations and correlations between different kinds of factors.

The Anne Hathaway Effect is one such peculiar correlation related to popular businessman and investor Warren Buffet, Anne Hathaway, and his company Berkshire Hathaway(BRK).

In this article let us know more about the effects and observations around this phenomenon.

The Anne Hathaway Effect

The Hathaway effect news was first picked up by CNBC. According to this effect, whenever Anne Hathaway achieved a milestone in her career it was observed that the stock prices of the company Berkshire Hathaway(BRK)  shoot up. This was a strange phenomenon since both Anne and the company had nothing in common apart from a part of the name. This was seen as a strange correlation and some of the evidence that supported this phenomenon was.

  • On 26 September 2008 the movie "Passengers" was released and a stock rise in BRK was observed at 1.43 percent

  • On October 3, 2008, ‘Rachel Getting Married’ was released and BRK shoot up 0.44 percent

  • On 5 Mar 2010,' Alice In Wonderland was released, and BRK was seen with a rise of 0.74 percent

  • On Nov 29, 2010, Anne Hathaway was made co-host of the 83rd Academy Awards, and BRK shoot up 0.25 percent.

A study by a blogger suggested that the rise in stock prices may be a correlation. Since many organizations use Machine Learning for stock prediction by analyzing news articles on the internet. For this, they deploy web crawlers and spiders on the web that gather and scrape useful information. These web crawlers might have picked up news related to Anne Hathaway's career milestones and this might have given a positive sentiment and consequently predicted a rise in stock prices of BRK company. People observing this prediction related to BRK due to Anne Hathaway news having bought shares of the company expecting growth. This led to the rise in the prices of stocks BRK.

However, this assumption and theory are debated among different sections of society and each of them has its point of view on the Anne Hathaway Effect.

The Experts on the stock market think that this phenomenon is normal since the market was high during that period.

The Statisticians termed this as an anomaly and with both the phenomenon sharing no correlation.

However, computer scientists believed the theory proposed by the blogger and believed that it could have been covered due to the web crawlers picking up information about Anne Hathaway.

Conclusion

The Anne Hathaway Effect phenomenon has its connection with the famous Hollywood actress Anne Hathaway and famous investor and trader Warren Buffet. It is a strange phenomenon observed between Anne and BRK shares that showed that each time Anne Hathaway achieved a career milestone, the share prices of BRK would rise. However, this is still a debated topic and different sections of society have their own opinions. Lots of research is being done on this phenomenon.

Updated on: 26-Sep-2023

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